The Fair Trade Commission (FTC) yesterday approved Uni-President Enterprises Corp’s (統一企業) bid to increase its holding in TTET Union Corp (大統益) to 45.32 percent, saying the the deal would not hinder competition.
Uni-President, one of Taiwan’s leading food makers, wants to increase its stake in TTET Union, which imports soybeans and produces soybean powders and soybean oil, by 8.32 percent from the current 37 percent, the commission said.
The commission said it had reviewed the markets for soybeans, soybean powders, animal feeds and cooking oil, and decided the deal would not affect competition in the those markets, commission spokesman Sun Lih-chyun (孫立群) said by telephone yesterday.
Sun said the market shares of Uni-President and TTET Union in the cooking oil market would increase to 20 percent after the deal, but the two companies need to compete with foreign firms, and there are four other large cooking oil manufacturers in the market.
The market for soybeans will remain competitive after the deal because soybeans can be imported, he said.
Soybean powders manufactured by Uni-President were largely consumed by the company itself in producing other goods, so the market share of the two companies will only increase slightly after the deal, Sun said.
Uni-President purchases raw materials from TTET Union to produce animal feeds, but companies can choose to purchase animal feeds from abroad as well, he said.